Brown-Forman Corporation announced on Tuesday plans to restructure it will be closing its Louisville cooperage and reducing its global workforce by 12%.
The company employs about 1,100 people in Louisville. The workforce reduction, which will impact around 650 of its 5,400 employees globally, is part of a broader restructuring effort to adjust to changes in the market.
The Louisville cooperage, which produces barrels used in the aging process for the company’s products, will cease operations by April 25, 2025. This decision will affect approximately 210 employees. Brown-Forman stated that it will source barrels from an external supplier to maintain production needs.
In a news release, President and CEO Lawson Whiting stated, “We are committed to supporting our employees through this transition with severance, outplacement services, and other benefits. These actions are intended to position the company for continued success in the global spirits market.”
Brown-Forman estimates that closing the cooperage and other restructuring efforts will save between $70 and $80 million annually. Additionally, the company plans to sell the cooperage property, which is expected to generate over $30 million.
The announcement comes as Kentucky’s bourbon industry faces slower sales growth following a period of expansion during the pandemic. Eric Gregory, president of the Kentucky Distillers Association, described the slowdown as a “market correction.”
The industry is also navigating external challenges, including the potential reintroduction of a 50% tariff by the European Union on American whiskey in March.
Reactions From Leaders
Louisville Mayor Craig Greenberg acknowledged the impact of the cooperage closure on local workers and emphasized the importance of the bourbon industry to the region.
“While these changes are significant, bourbon tourism in Louisville remains strong,” Greenberg said. “The city will continue to support Brown-Forman and other businesses in this industry.”
Brown-Forman has been headquartered in Louisville for 155 years and manages brands such as Jack Daniel’s, Woodford Reserve and Old Forester. The company operates in 170 countries worldwide.
As part of the restructuring, Brown-Forman’s leadership stated that the initiatives are designed to adapt to current market conditions and sustain long-term growth. The company confirmed that it would provide support services for employees affected by the changes but did not specify whether other Louisville-based roles would be included in the workforce reduction.
Related Stories
Kentucky Bourbon Industry Faces Unprecedented Challenges As Tariffs Loom
This article appears in Dec 18, 2024 – Jan 16, 2025.